The preferences of the representative consumer over consumption and leisure are represented by use of a

A) production function.
B) utility function.
C) benefit function.
D) preference function.

B

Economics

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The Federal Reserve fears that the United States economy is growing too slowly and is stuck in a recession. To move the economy back to its potential GDP, the most likely policy action for the Fed is to ________ the federal funds and thus ________

A) raise; increase aggregate demand B) raise; decrease aggregate demand C) lower; increase aggregate supply D) lower; decrease aggregate supply E) lower; increase aggregate demand

Economics

Explain the credibility theory of the EMS

What will be an ideal response?

Economics